World Economy

$100b BRICS Currency Pool Put in Force

$100b BRICS Currency Pool Put in Force$100b BRICS Currency Pool Put in Force

The agreement on the BRICS $100 billion currency reserve pool came into force Thursday. The fund was set up by the developing nations group to protect their national currencies from volatility in global markets, RT reported. “The arrangement is important not only because it provides the possibility to quickly obtain additional liquidity, but its very existence has a positive, stabilizing effect on the market. Similar agreements created by other countries (for example, the European Stability Mechanism) continue to be in force and fulfill their functions,” Russia’s BRICS group representative told TASS. There is a number of technical documents to be signed during the next meeting of the BRICS central bank governors and finance ministers, the official added. Currently there are “no signals of an immediate need of the pool’s funds from BRICS partners,” according to the official. Last July, the group (Russia, Brazil, India, China and South Africa) agreed to a reserve currency pool worth over $100 billion as well as the $100 billion BRICS Development Bank.